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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Penske Automotive Group's 5-Year RORE % for the quarter that ended in Jun. 2026 was -7.64%.
The industry rank for Penske Automotive Group's 5-Year RORE % or its related term are showing as below:
PAG's 5-Year RORE % is ranked worse than 69.41% of 1154
companies
in the Vehicles & Parts industry
Industry Median: 9.38
vs PAG: -7.64
Penske Automotive Group (NYSE:PAG) 5-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Penske Automotive Group 5-Year RORE % Related Terms
Penske Automotive Group 5-Year RORE % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto & Truck Dealerships subindustry, Penske Automotive Group's 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Penske Automotive Group 5-Year RORE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Penske Automotive Group's 5-Year RORE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jun. 2026 and 5-year before.
Penske Automotive Group (PAG) has a 5-Year RORE % of -7.64 as of Jun. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Penske Automotive Group and its competitors. According to the industry distribution chart, Penske Automotive Group ranks #801 out of 1154 companies in the Vehicles & Parts industry, placing it in the top 69.4%.
Is Penske Automotive Group's 5-Year RORE % too high?
Penske Automotive Group's current 5-Year RORE % is -7.64. Based on the distribution chart, Penske Automotive Group ranks #801 out of 1154 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Penske Automotive Group has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Penske Automotive Group's 5-Year RORE % compare to KMX and ALTB?
According to the Vehicles & Parts industry distribution chart, Penske Automotive Group ranks #801 out of 1154 companies for 5-Year RORE %. This places Penske Automotive Group in the lower half of its industry. The industry median 5-Year RORE % is 9.38. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for a Vehicles & Parts company?
The median 5-Year RORE % among Vehicles & Parts companies is 9.38, based on 1,154 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Penske Automotive Group and its competitors. For the Vehicles & Parts industry, the median 5-Year RORE % is 9.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penske Automotive Group's current 5-Year RORE % is -7.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Penske Automotive Group stock overvalued right now?
Based on GuruFocus' analysis, Penske Automotive Group (PAG) is currently considered Modestly Overvalued. The stock's GF Value™ is $170.87, compared to a current price of $215.76 — trading 26.3% above its estimated fair value. The current 5-Year RORE % is -7.64. Penske Automotive Group's overall GF Score™ is 85/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Penske Automotive Group (PAG), the current 5-Year RORE % is -7.64 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Penske Automotive Group (PAG) Overvalued in 2026?
Based on GuruFocus' analysis, Penske Automotive Group stock appears to be overvalued.
The current stock price of $215.76 is trading 26.3% above its estimated GF Value™ of $170.87.
GuruFocus considers Penske Automotive Group to be Modestly Overvalued.
Key valuation signals for PAG:
5-Year RORE %: -7.64
GF Value™: $170.87 vs. price of $215.76 (26.3% above fair value)
No single metric tells the full story. See the PAG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Penske Automotive Group operates in 19 US states and overseas. It has about 150 US and Puerto Rico light-vehicle stores as well as 217 franchised dealerships overseas, primarily in the United Kingdom but also in Australia, Germany, Italy, and Japan. The company is the third-largest US publicly traded dealership in terms of light-vehicle revenue and sells more than 40 brands, with over 90% of retail automotive revenue coming from luxury and import names. Other segments are service and finance and insurance. The firm's Premier Truck Group owns 45 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 15 used-vehicle stores, mostly in the US and UK under the CarShop (US) and Sytner Select (UK) brands. Penske is based in Bloomfield Hills, Michigan.
85GF Score
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5-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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